Rob McEwen, who can almost be called a living legend in the gold mining industry, says gold prices may reach $5,000 an ounce – and as soon as 2012 but maybe not until 2014. McEwen sees loss of faith in the dollar being the reason for gold’s coming rise.
“Money supply has expanded so rapidly that there are a lot more dollars looking for a steady home,” McEwen said in a Bloomberg Television interview. “Governments cannot help themselves. They want to help the economy. They are printing money. They are going into debt on a horrific scale, and that will depreciate the value of the dollar.”
The coming price rise represents a “once-in-every-300-years” phenomenon, McEwen said. He maintained his previous forecast that gold will rise to $2,000 an ounce by the end of this year.
Such forecasts have been made by numerous newsletter writers and usually can be dismissed as hype. Often, those predictions come in advertisements for their newsletter. But, McEwen’s prognostication carries weight.
McEwen invests tens of millions of dollars in his beliefs. Many of the newsletter writers are trying to make their first million. Still, there are credentialed newsletter writers who have called for gold prices in the multiple thousands of dollars.
Richard Russell, editor of Dow Theory Letters, has written that before this primary bear market in stocks is over, the Dow and the price of gold will meet. Basically, Russell expects that somewhere in the future we will see something like 3,000 on the Dow and $3,000 gold, but maybe it will be 4,000 on the Dow and $4,000 gold. Or, maybe it will be 5,000 on the Dow and $5,000 gold.
Jim Sinclair, not a letter writer but an acclaimed commodities investor, sees $1,650 gold this year. Not as optimistic as McEwen, but nonetheless a rosy outlook.
Philip Manduca, Head of Investment and Chairman of the Investment Committee for ECU Group (London), sees gold topping $2,000 “before 2010 is out.”
Although gold production has fallen in recent years, that is not the driving force behind gold’s price rise over the last decade. The reason for gold’s ascent is concern about the dollar—and other fiat currencies for that matter. Considering Washington’s “solutions” to today’s financial woes, investors have reasons to be concerned about the dollar.
The outlook for gold—and silver—is bright. Rob McEwen says it is very bright.
“Money supply has expanded so rapidly that there are a lot more dollars looking for a steady home,” McEwen said in a Bloomberg Television interview. “Governments cannot help themselves. They want to help the economy. They are printing money. They are going into debt on a horrific scale, and that will depreciate the value of the dollar.”
The coming price rise represents a “once-in-every-300-years” phenomenon, McEwen said. He maintained his previous forecast that gold will rise to $2,000 an ounce by the end of this year.
Such forecasts have been made by numerous newsletter writers and usually can be dismissed as hype. Often, those predictions come in advertisements for their newsletter. But, McEwen’s prognostication carries weight.
McEwen invests tens of millions of dollars in his beliefs. Many of the newsletter writers are trying to make their first million. Still, there are credentialed newsletter writers who have called for gold prices in the multiple thousands of dollars.
Richard Russell, editor of Dow Theory Letters, has written that before this primary bear market in stocks is over, the Dow and the price of gold will meet. Basically, Russell expects that somewhere in the future we will see something like 3,000 on the Dow and $3,000 gold, but maybe it will be 4,000 on the Dow and $4,000 gold. Or, maybe it will be 5,000 on the Dow and $5,000 gold.
Jim Sinclair, not a letter writer but an acclaimed commodities investor, sees $1,650 gold this year. Not as optimistic as McEwen, but nonetheless a rosy outlook.
Philip Manduca, Head of Investment and Chairman of the Investment Committee for ECU Group (London), sees gold topping $2,000 “before 2010 is out.”
Although gold production has fallen in recent years, that is not the driving force behind gold’s price rise over the last decade. The reason for gold’s ascent is concern about the dollar—and other fiat currencies for that matter. Considering Washington’s “solutions” to today’s financial woes, investors have reasons to be concerned about the dollar.
The outlook for gold—and silver—is bright. Rob McEwen says it is very bright.
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